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Independent Consultant Agreement

Signing an
independent consultant agreement is not an option to any serious professional.
The agreement gives the arrangement between the consultant and client the legal
basis to proceed as envisaged. Without it, one of the two parties involved could
ignore doing what’s expected of them. The agreement clarifies things and
eliminates the possibility of confusion. For the most part, the independent
consultant agreement deals with the following issues:

- the services the consultant will
provide

- the deadlines the consultant has to
meet

- when the consultant will be paid, which
includes late penalties for not being paid on time

- how much the consultant will be paid

- explanation on the party that will
cater for the expenses

- an understanding that the
client-independent consultant relationship exists

- a statement and proof about the
presence of a valid liability insurance from the consultant

- explanation on how the two parties will
resolve any emerging disputes

1) Cover
all issues

More importantly,
independent consultants need to understand every issue that the agreement
tackles. For example, the agreement clearly protects the consultant’s
intellectual property. All consultants (who are basically contractors) own the
copyright to all the works they create. It’s worth mentioning, however, that
some clients might want to take over complete ownership of the works the consultant
creates. They may even insist on indicating this on the agreement.

Signing the copyright over to the client is giving up one
benefit of being a consultant.

2) Declare
Status

The agreement should
not leave any doubt about your status as an independent consultant. For the
most part, independent consultants have more control of what they do and how
they do it. In this regard, independent
consultants are completely different from employees.
Such issues should appear clearly on the agreement. Some of the controls the
contractor needs, and which must appear on the independent consultant
agreement, include the following:

a)
control of time

b)
control of place

c)
controlling how the work is to be done

3) Cover
Tools to be Used

What tools will you
use? Who will provide the tools? These questions might appear mundane but the
truth is they aren’t. Every issue, no matter how insignificant it seems, must
feature in the agreement. Also, it’s worth understanding that the issue of
tools and equipment helps clarify your status. For example, independent
consultants should move around with their own tools and equipment. If the
client provides everything, then you can refer to yourself as an employee.

4) Should
not be Ambiguous

A well-drafted and
thought out independent consultant agreement is not ambiguous where the
contractor’s assistants are concerned. All
independent consultants have the freedom and leeway to appoint or choose their
preferred assistants. Employees, on the other hand, do not have such
privileges. Also, it’s worth mentioning here that consultants are free to
choose between working alone or hiring as many assistants as they deem fit for
the project.

Independent consultants undergo evaluation specifically for
results and not procedures.

5) Should
be in Writing

The independent
consultant agreement should always be in writing.
Without putting everything down in writing, the agreement will not provide the
legal protection the independent consultant needs before commencing any
project. Without legal protection, it becomes harder for consultants to follow
up with their clients on issues such as lack of payment. Oral agreements are
horrible because of the costly misunderstandings and confusion they often
perpetuate.

It’s important for
freelance contractors to sign independent consultant agreements with their
clients. More importantly, the agreement should be done right and feature all
the commonly recognized aspects that protect the independent consultant. The
agreement should include length of the contract, project description, payment
terms, non-disclosure terms, rights and responsibilities of the two parties, termination
clause, and disclaimers.